ABSOLUTE NNN – CORPORATE GUARANTEE OFFICE & … · with market rate adjustments every five years being January 2015, 2020, 2025 and 2030. Current base rent inclusive of the 2020

ABSOLUTE NNN – CORPORATE GUARANTEEOFFICE & DISTR IBUT ION CENTER

CASCADE ORTHOPEDIC SUPPLY TENANT2638 Aztec Drive, Chico, Ca

Contact Bill Brouhard(530) 879-4420 direct(530) 624-0951 [email protected]#01023004

Absolute Triple Net Lease thru December 2033

Offered at FMV $3,480,000 ~ 7% CAP

Designated Qualified Opportunity Zone

32,651 SF Total Floor Area ~ 29% Office

1.2 Ac Site ~ APN 039-620-038

Founded in 1973, Cascade Orthopedic Supply Inc.,(Tenant) is a leading distributor of orthotics and prosthetics in North America.

In early 2020, Otto Bock Healthcare North America, a global leader in prosthetics with over 7,000 employees and $1Billion in sales, acquired majority shareholder interest in Cascade Orthopedic Supply Inc..

Effective May 2020, Otto Bock Healthcare North America guarantees the obligations of Tenant thru the full term of the lease.

www.Ottobockus.comwww.Cascade.com

CASCADEORTHOPEDICSUPPLY2638 Aztec DriveChico, Ca 95928

DISCLAIMERThis document contains selected informationpertaining to the Property and does notpurport to be an all-inclusive representationof the Property, or to contain all or part of theinformation which prospective investors mayrequire to evaluate a purchase of realproperty. In this document, reference tocertain documents including leases andother materials are described in summaryform. Financial information is provided forgeneral reference purposes only. Thesereferences do not purport to be completenor necessarily accurate descriptions of thefull agreements.

The information contained in this documenthas been obtained from sources believedreliable. While Guillon Brouhard CommercialReal Estate (GBRE) does not doubt itsaccuracy, GBRE has not verified its accuracy,and makes no guarantee, warranty orrepresentation about it. It is your responsibilityto independently confirm its accuracy andcompleteness. Any projections, opinions,assumptions or estimates used are forexample only and do not represent thecurrent or future performance of theproperty. The value of this transaction to youdepends on tax and other factors whichshould be evaluated by your tax, financialand legal advisors. You and your advisorsshould conduct a careful, independentinvestigation of the property to determine toyour satisfaction the suitability of the propertyfor your needs

Contact Bill Brouhard(530) 879-4420 direct(530) 624-0951 [email protected]#01023004

CHICO, Ca Located in Butte County 90 miles north of Sacramento, Chico CA boasts adiverse range of light manufacturing, healthcare, higher education, technologyand back office information technology enterprises. The city is a regional centerfor financial, retail, business and medical services as well as a regional destinationfor recreation and tourism. www.Chico.ca.us

Best Places to Live (2010 Men’s Journal)Best Places to Retire (US News & World Report; CNN Money; Kiplinger’s Personal Finance)Best Places in America (Forbes Magazine, May 2000)Best Mid-Size Downtown (Ranked # 3. California Planning & Development Report, 2007) Best Green City on America (Country Home Magazine, 2007)Best Small Art Town in America (Ranked # 10 by Author John Villani, 2003)Top Bike Town in America (Ranked #1 – Bicycle Magazine, 1997)10 Greenest Colleges in America, CSU Chico (The Daily Green)2007 Best Colleges, CSU Chico (Ranked # 4, US News & World Report, 2007)Fastest Commute Time (Ranked # 5 by Money Magazine, 2006)5 Star Rating for K-12 Educational System (Expansion Management Magazine, 2007)

CASCADEORTHOPEDIC SUPPLYChico, Ca

Contact Bill Brouhard(530) 879-4420 direct

(530) 624-0951 [email protected]

TENANT SUMMARY - CASCADE ORTHOPEDIC SUPPLY INC.

Founded in 1973, Cascade Orthopedic Supply is distinguished as the leading distributor oforthotics and prosthetics in North America. Cascade’s facility in Chico CA (the subjectproperty) serves the main corporate office and west-coast distribution center. Additionaldistribution facilities are located in Texas, Illinois, and Pennsylvania, allowing overnightdelivery anywhere in the contiguous United States.

Cascade's reputation is built on a continued commitment to superior service and support,investments in technology, and operational efficiency. Cascade distributes a broad rangeof products from more than 250 suppliers. As a leading provider in the industry, Cascade iscommitted to helping customers build a successful practice and deliver better patientcare.

Financial information on Cascade Orthopedic Supply may be provided uponexpression of bonafide interest and capacity to close.

2638 Aztec Drive, Chico, CA was designed and built for Cascade under alease option. Within 1 year following completion the property was acquiredby the current owner and Seller 2638 Aztec LLC, conditioned on the subject25 year NNN lease which commenced December 2009 and expiresDecember 2033.

In January 2020, Cascade announced a major investment in the companyby Otto Bock Healthcare North America. Otto Bock’s majority shareholderinterest in Cascade is intended to spur growth for the orthotic and prostheticindustry by improving access to products and services, and drivingefficiencies into supply-chain operations. In May 2020, Otto Bock executed aformal lease guarantee.



LEASE SUMMARY

The 25 year single tenant commercial lease commencedin 2009, and is intended to be a full, or “triple”, net leasewith a complete transfer of all operating financialobligations of ownership during the term from Lessor toLessee. Terms and conditions of the lease can bedescribed as favorable to the Lessor.

The lease provides for annual rent increases of 2.5%, alongwith market rate adjustments every five years beingJanuary 2015, 2020, 2025 and 2030. Current base rentinclusive of the 2020 market rate adjustment is $21,223 permonth NNN ($.65/SF). Base rent for the five year periodending December 2024 is as follows:

Landlord obligations are limited to the roof, walls, andstructural components, maintenance and repair for whichbeing a reimbursable operating expense. As a singletenant property Tenant has historically paid any and allutilities, services, repair and maintenance directly.


From (1) To Base Rent Base % Increase

Base Rent Per SF/Mo

Base Rent Per SF/Yr

01‐May‐20 31‐Dec‐20 21,223$ 0.0% 0.65$ 7.80$ 01‐Jan‐21 31‐Dec‐21 21,754$ 2.5% 0.67$ 8.00$ 01‐Jan‐22 31‐Dec‐22 22,298$ 2.5% 0.68$ 8.19$ 01‐Jan‐23 31‐Dec‐23 22,855$ 2.5% 0.70$ 8.40$ 01‐Jan‐24 31‐Dec‐24 23,426$ 2.5% 0.72$ 8.61$ (1) Base rent adjustment to FMV January 1st of 2025 and 2030.

In May 2020, Otto Bock Healthcare North America, aglobal leader in prosthetics with over 7,000 employees and$1Billion in sales, executed a formal lease guarantee.www.Ottobockus.com

The property is being offered at $3,480,000 ($106.58/RSF),representing a conservative 7% CAP, inclusive of 5%vacancy allowance, on year 1 rents based on July 2020COE.



FACILITY SUMMARY

2638 Aztec was designed and built for Cascade Orthopedic Supply in 2008-2009 under a lease-option agreementenabling the owners of the company to acquire the finished facility. Acquisition occurred in January 2010 subject tothe existing 25 year Triple Net Lease.

The facility is comprised of a 23,192 SF warehouse and 9,459 SF of professional office space, level 1 being 6,008 SF andlevel 2 being 3,451 SF, together totaling 32,651 SF of floor area. The building has concrete tilt-up walls, steel roof trusses,reinforced concrete slab foundation and a built-up composition roof. The warehouse area has 22-24 foot clear heights,insulated ceilings, drop fluorescent lighting and skylights. Office areas include an open lid reception lobby, open officespace, several administrative offices, conference and meeting rooms, a break room and restrooms. Finishes throughoutthe office space are good, with acoustic tile ceilings, carpet/tile floors and drywall walls. The open lid upper office wascompleted in 2016 as a mezzanine expansion.

The subject property is 1.20 acres, zoned Light Manufacturing (ML)and located in the Hegan Lane Business Park, lessthan 2 miles west of Hwy 99. All necessary on-site and offsite improvements are in place, including asphalt-paveddriveways, parking areas and streets, curbs, gutter, sidewalks and underground utilities. The warehouse is served with a12’ by 14’ grade level door, with a depressed wall panel enabling conversion to recessed dock configuration in thefuture. The subject has approximately 45 onsite marked parking spaces together with non-metered public streetparking. The site has both back-up power generator and electric vehicle charging station.

The building also includes a large rooftop solar array that was funded via a PACE bond and covers all of the electricitycosts. The PACE financing agreement, offered for buildings that complete environmental upgrades to increaseenergy efficiency, finances solar improvements subject to an assessment lien on the property paid along with propertytaxes on a semi-annual basis. The subject’s term is for 20 years, beginning in 2013, and will be paid in full in 2033.Pursuant to the subject lease, property taxes are at Tenants expense.


Vicinity Aerial

Located within the Hegan Lane Business Park




Hegan Lane Business Park

Exterior Photos






LEVEL 1 FLOORPLAN – 29,200 SF


DISTRIBUTION WAREHOUSE23,192 SF

OFFICE6,008 SF



LEVEL 2 MEZZANINE – 3,451 SF


ABSOLUTE NNN – CORPORATE GUARANTEE OFFICE & … · with market rate adjustments every five years being January 2015, 2020, 2025 and 2030. Current base rent inclusive of the 2020

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